{"id":155563,"date":"2025-03-25T10:58:50","date_gmt":"2025-03-25T10:58:50","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/investing\/abf-singapore-bond-index-fund-dividend-july-2024\/"},"modified":"2025-03-25T10:58:50","modified_gmt":"2025-03-25T10:58:50","slug":"abf-singapore-bond-index-fund-dividend-july-2024","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=155563","title":{"rendered":"ABF Singapore\u00a0Bond Index Fund Dividend (July 2024)"},"content":{"rendered":"


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\"ABF<\/p>\n

With a fund size of almost SGD $1 billion, the ABF SG Bond ETF<\/a> is the go-to instrument to gain access to one of the world\u2019s highest-yielding AAA-rated government bonds.\u00a0<\/p>\n

Most recently, our Singapore domestic bond index tracker, ABF Singapore Bond Index Fund, declared its dividend payout of SGD $0.0124 for July 2024, which is the exact same amount that was declared in January 2024.<\/p>\n

Overview \u2013 ABF Singapore\u00a0Bond Index Fund<\/h2>\n

As the first-ever exchange-traded fund (ETF) bond fund in Singapore, it invests in the constituents of the iBoxx ABF Singapore Bond Index<\/strong>.<\/p>\n

This means that it tracks a basket of high-quality bonds issued primarily by the Singapore government and quasi-Singapore government entities such as Temasek, SP Group, Land Transport Authority and Housing Development Board.<\/p>\n

The ABF Singapore\u00a0Bond Index Fund listing date on the SGX is 31 August 2005<\/strong>.<\/p>\n

Traditionally, bond ETFs typically offer investors haven status amidst market volatility, such as the Covid-induced crash.<\/p>\n

Looking at the chart below, the ABF Singapore Bond Index Fund singlehandedly dampened volatility as equities tanked 20% to 30% at the most extreme.<\/p>\n

Unfortunately, the Fed\u2019s interest rate hikes have decimated the total returns of the same ETF, whereas VWRA and STI ETFs have staged strong recoveries.<\/p>\n

Below is a chart which I have taken a screenshot of from StocksCafe<\/a>.<\/p>\n

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\"ABF
Sample Portfolio of VWRA (33%), STI ETF (33%) and ABF SG Bond (33%)<\/figcaption><\/figure>\n<\/div>\n
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\"ABF\"ABF<\/figure>\n<\/div>\n

In the spirit of full transparency, I have to admit that although I used to hold the ABF Singapore Bond Index ETF, I no longer do so.<\/p>\n

There is absolutely no reason to risk any exposure to volatility when I can lock in returns of more than 3% on up to $200,000 of my savings and emergency funds with Singapore Savings Bonds.<\/p>\n

Singapore Savings Bonds have been offering 10-year returns of about 3%<\/a> or more for the past six months, and it has taken up a significant portion of my available funds.<\/p>\n

You might help this helpful: Read These 37 Things To Become An Expert On The Singapore Savings Bonds<\/a><\/p>\n

For short-term idle funds, I am currently parking them with Fullerton SGD Cash Fund<\/a> and Mari Invest<\/a> as the underlying instrument.<\/p>\n

You can read the comparison between Fullerton SGD Cash Fund and Mari Invest<\/a> to learn which tool is right for you.<\/p>\n

Key information about the ABF SG Bond ETF<\/h2>\n